Big news for Primark fans! The retail giant might undergo a massive shake-up as its owner, Associated British Foods (AB Foods), considers splitting it from its food division. Despite Primark’s international brand strength and growth potential, AB Foods faced a 13% drop in annual profits, reporting £1.7 billion pre-tax profits for the year.
While Primark’s sales climbed 1% to £9.5 billion, a cautious consumer base saw UK and Ireland sales slip by 3.1% compared to last year. Things picked up in the latter half of the year, thanks to a stronger product line, especially in womenswear, and a boost in digital presence with the launch of a mobile app.
The group’s grocery and ingredients divisions, managing brands like Kingsmill and Twinings, saw steady sales. However, a decline in sugar business sales offset retail gains. With no final call on the restructuring yet, AB Foods is reviewing its options, but Primark’s consumer outlook remains “subdued” into next year.
CEO George Weston champions the potential of Primark, promising more focus on pricing strategies and store expansions to drive growth. Exciting times ahead—stay tuned for updates on Primark’s future!